Lead The Way Video Series | Importance of Cash Planning

In a recent installment of the “Lead The Way” video series, Tanner Stenson, the Accounting Supervisor at Landscapes Golf Management, based out of their corporate office in Lincoln, Nebraska, shed light on a crucial aspect of managing golf facilities: understanding cash flow.

Cash flow is the lifeline of any business, and golf facilities are no exception. It’s the cash in hand that ensures employees and vendors get paid, and operations run smoothly. However, managing and understanding cash flow goes beyond simply looking at your profit and loss statement. Tanner highlights that there are significant components of cash flow that do not appear on these statements but are vital in understanding the overall financial health of a facility.

Three Key Areas Affecting Cash Flow:

1. Operating Activities:
These include changes in accounts receivable, accounts payable, accrued liabilities, and deferred income. These elements represent the day-to-day transactions that directly affect the operational cash flow of the facility.

2. Investing Activities:
This area covers investments in the facility itself, such as acquiring a new fleet of golf carts, updating kitchen equipment, or constructing new cart paths. These investments, while necessary for enhancing the club’s offerings and customer experience, require a significant outlay of cash.

3. Financing Activities:
These are related to the ways a facility manages its funding sources, such as mortgage payments made to the bank. Financing activities reflect how the club finances its large-scale investments and how these decisions impact cash flow.

Watch the full video: